Top losers on Wall Street: Regencell, Pony.ai, Sable Offshore see steep drops

U.S. equity markets closed mixed on June 3, 2025, with traders rotating out of speculative and high-momentum names, triggering sharp losses across biotech, offshore energy, autonomous tech, and education stocks. Leading the day’s downside were Pony.ai Inc. (NASDAQ: PONY), Sable Offshore Corp. (NYSE: SOC), and Regencell Bioscience Holdings Ltd. (NASDAQ: RGC) — all of which posted double-digit declines.

The broader sell-off came despite no major macro shock, hinting at sector-specific rebalancing and profit-booking in names that had recently rallied. Across the top 10 losers, seven stocks had posted strong 52-week gains prior to June 3’s pullback, suggesting possible technical or sentiment-driven corrections.

Why Did Pony.ai Stock Fall Nearly 21%?

Pony.ai Inc. (NASDAQ: PONY) dropped 20.69% to $13.84, with an unusually high trading volume of 40.9 million shares — four times its average. The autonomous driving startup, which had gained over 45% year-to-date, faced a sharp intraday reversal that many traders attributed to profit-taking after a strong April–May rally.

Although there were no company-specific press releases, analysts believe Pony.ai’s valuation has been stretched amid continued regulatory ambiguity surrounding full driverless deployment in the U.S. and China. The company has benefited from policy-driven enthusiasm around smart city mobility but remains pre-revenue in many areas.

With a market cap of $4.91 billion and no defined earnings metrics, Pony.ai trades largely on sentiment. The June 3 drawdown may signal a near-term cap on further upside unless regulatory catalysts emerge.

What Triggered the 17% Drop in Sable Offshore?

Sable Offshore Corp. (NYSE: SOC) fell 17.61% to close at $24.04, as 6.9 million shares exchanged hands in a heavy volume session. The offshore oil and gas operator had posted a 98% surge over the past year, and the June 3 decline likely reflects a wave of rotational selling as oil prices dipped and OPEC-related news failed to excite the markets.

Traders speculated that short-term investors might be unwinding positions in offshore names as floating production margins face pressure. Sable’s fundamentals remain strong, with a growing pipeline of Gulf of Mexico activity, but its high-beta nature makes it vulnerable to oil price swings.

Institutional sentiment toward energy has been mixed this week, and with a relatively small $2.9 billion market cap, SOC remains highly reactive to even modest shifts in investor risk appetite.

Why Did Regencell Bioscience Plunge Despite Past Gains?

Regencell Bioscience Holdings Ltd. (NASDAQ: RGC) plummeted 15.17% to $609.10, wiping out over $100 in market cap value in a single session. The stock has long been volatile, having risen a staggering 16,000% over the past 12 months on speculation surrounding its alternative medicine and neurotherapy developments in Asia.

However, the sharp June 3 collapse appears tied to limited liquidity, with volume at just 35,593 shares. This thin float makes RGC highly susceptible to sharp intraday corrections. The lack of institutional coverage and fundamental valuation anchors raises concerns about sustainability, particularly after such an explosive run.

Unless Regencell can validate its claims with peer-reviewed data or FDA alignment, the stock may remain vulnerable to additional abrupt corrections.

Why Is Stride, Inc. Losing Momentum After a Strong Year?

Stride, Inc. (NYSE: LRN) declined 9.97% to $142.55, reversing part of its 104.99% 52-week gain. Volume was modest at 2.2 million, but analysts cited broad selling pressure across the edtech and online learning space as a potential factor.

Stride had outperformed through the academic year on strong K-12 virtual enrollment growth and higher guidance, but concerns about regulatory scrutiny and saturation in online education may now be weighing on sentiment.

With a P/E of 22.31 and a $6.2 billion market cap, the stock is still considered reasonably valued, but the June 3 drop could reflect short-term technical exhaustion. Investors may look for signals in upcoming earnings or enrollment data to determine whether this was a buying dip or a trend reversal.

What’s Behind EchoStar’s Double-Digit Decline?

EchoStar Corporation (NASDAQ: SATS) fell 11.31% to $16.15 amid renewed volatility in the satellite communications sector. Volume stood at 8.08 million, nearly triple the daily average. The June 3 sell-off follows growing investor skepticism toward the firm’s post-merger strategy with DISH Network.

Although EchoStar has a history of weathering telecom cycles, the decline may reflect technical chart breaks and FII rotation out of mid-cap telecom. With a market cap of $4.6 billion and negative 52-week returns, the company may now be under pressure to accelerate its network integration roadmap.

Some traders also highlighted rising capex concerns and delays in mobile 5G rollout as contributing factors.

Did Earnings Disappoint at Pearson plc?

Pearson plc (NYSE: PSO) lost 7.36% to close at $14.86, pulling back on modest volume of 1.75 million. The educational publishing firm remains in a transitional phase, moving toward digital-first learning models.

While its fundamentals are solid — including a P/E of 17.48 and a $10.3 billion valuation — U.S. investors may be recalibrating expectations after recent guidance failed to offer major upside surprises.

The company’s 22% 52-week gain could have invited profit-booking, and the June 3 move looks more technical than news-driven. Long-term investors may revisit Pearson depending on how the company’s adaptive learning and AI-integrated products perform across institutional channels.

Why Did Kenvue Trade Lower Despite Stable Margins?

Kenvue Inc. (NYSE: KVUE) dropped 6.17% to $22.21, trading over 37.3 million shares. The consumer health spinoff from Johnson & Johnson had gained steady investor interest thanks to its portfolio of household brands like Band-Aid and Tylenol.

However, weakness during June 3’s session is likely tied to rotation out of defensive names, especially as rate-cut optimism draws capital toward cyclical and growth plays. Kenvue’s high P/E ratio of 39.66 and $42.6 billion market cap suggest it may face multiple compression risk if margins don’t expand meaningfully in the next few quarters.

Institutional flows into staples have softened, and Kenvue may now trade sideways unless the company executes on innovation or emerging market growth.

What Caused VEON to Slide After Recent Gains?

VEON Ltd. (NASDAQ: VEON) fell 5.93% to $50.85. The telecom firm had rallied 112.96% over the past year, primarily on restructuring gains, improved governance, and asset sales in Ukraine and Kazakhstan.

The June 3 pullback seems like classic mean reversion. VEON’s valuation at just 8.84 P/E remains attractive, but after such rapid appreciation, many funds may be rebalancing to lock in gains.

Analysts also flagged some regional currency volatility and geopolitical overhangs in key operating geographies. Despite this dip, long-only telecom funds may continue to view VEON as an emerging-market turnaround candidate.

Why Is Grindr Under Pressure in This Market Cycle?

Grindr Inc. (NYSE: GRND) dropped 5.18% to $23.45 as the LGBTQ dating platform continued to face valuation doubts post-IPO. Volume was moderate at 2.37 million, and the stock remains a speculative play with little earnings visibility.

While Grindr has built strong brand equity and seen revenue growth, concerns persist over competition, monetization models, and regulatory exposure. The June 3 drop reflects broader tech and app-based service weakness.

The company’s 165% 52-week gain sets a high bar, and unless Grindr delivers substantial user growth in Q2, the recent decline could mark a medium-term top.

What’s Driving iQSTEL’s Continued Weakness?

iQSTEL Inc. (OTCQX: IQST) declined 5.90% to $12.52, continuing a downtrend that has cost it over 44% over the last 12 months. While the small-cap telecom tech firm often trades under the radar, the June 3 decline reflects poor liquidity and minimal institutional support.

The 365,000 volume may seem small, but it was over 7x the 3-month average, indicating some outsized block exits. With a $38.5 billion market cap figure that appears inflated (likely reflecting dual-listing discrepancy), iQSTEL is under scrutiny from retail traders.

Unless the company can clarify growth visibility or pursue strategic alliances, volatility is likely to persist.

Market Sentiment and Outlook

June 3’s top losers were largely composed of stocks that had surged over the past quarter or year, suggesting that the trading session was less about panic selling and more about rotation and profit-taking. Biotech, autonomous mobility, offshore energy, and education sectors faced the bulk of the pressure, while defensive names like Kenvue and Pearson also saw flows shift away.

With macro conditions stable and no major economic data shock, technical pullbacks like those seen on June 3 often present reentry opportunities. However, traders will want to monitor follow-through action and analyst commentary over the coming sessions before making fresh allocations.